HomeMy WebLinkAbout09.c EDB AWS 2025 Update EXECUTIVE SUMMARY
AGENDA ITEM:
Alternative Water Supply 2025 Annual Update
Date: June 11,2025
BACKGROUND:
Clay County Utility Authority (CCUA) Rate Resolution No. 2015-2016-01, Section 4. (7) authorized and
implemented an Alternative Water Supply(AWS) Surcharge and Connection Charge. The resolution requires
staff to report the adequacy of the AWS Surcharge and Connection Charge to the Board of Supervisors by July
1st each year.Any recommended AWS Surcharge or Connection Charge changes are placed in CCUA's annual
budget and presented at the yearly public rate hearing.
2024-2025 PROGRESS:
Staff and our consultant, Carollo Engineers (Carollo), have significantly progressed with CCUA's Project
Quench Potable Reuse Demonstration AWS initiative (Project Quench). CCUA Staff envision Project Quench as
one potential alternative water supply of the future. Shallow groundwater augmentation, surface water, and
expanded demand management techniques are also leading potential alternatives as detailed in CCUA's
Integrated Water Resources Plan. The Florida Department of Environmental Protection(FDEP)requires this
demonstration work as a prerequisite to a potential future Basis of Design Report for this water portfolio
technique. CCUA has previously conceptually evaluated stormwater augmentation and lower Floridan
Aquifer production(and storage) as other potential AWS techniques.
POTABLE RECLAIMED WATER DEMONSTRATION PROJECT(PROJECT QUENCH):
CCUA's contractor for construction, Wharton Smith, Inc., completed the construction of the facility in the
week of June 10,2024. CCUA staff began use of the facility for demonstration testing,operator training, and
public engagement in July 2024. Carollo, remains engaged with the project effort as detailed in a Pilot
Operations Supplemental Agreement approved by the Board of Supervisors in March of 2024. We discuss
below the on-going efforts in three elements.
Demonstration Testing. Carollo directly assists with the 12-month demonstration testing intended to
document through extensive laboratory analysis the facility exceeds FDEP standards. CCUA,Carollo,and
FDEP worked collaboratively to develop a detailed test plan for this purpose. At the time of this writing,
CCUA staff and Carollo completed 11 of 12 planned extensive sampling events and reviewed detailed data
through the first six-month operating period. CCUA staff considers the FDEP reviews and commentary to
date favorable regarding the work completed so far. We scheduled the final testing event for July 8, 2025.
Operator Training. Carollo fully operated the facility for the first quarter with shadowing by CCUA
operations staff. Thereafter, Carollo operations intensity reduced quarterly to 75% / 50% / 25% in the
second, third, and fourth operational quarters, while CCUA operations staffing responsibility increased
similarly(0/25%/50%/75%). CCUA operations staff intends to begin 100%operations responsibility in
July. Staff are well prepared and have made a number of enhancements to the system during the first year
of operation.
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Public Engagement. Staff have hosted a wide variety of visitors for the purpose of public engagement.
A full suite of "collateral" presentation material was previously developed on the project to educate
community stakeholders on the need for future alternative supplies, what supply options exist, and the
background on why potable reuse may be a good selection for a portion of the water portfolio in the future.
Visitors have ranged from neighboring utilities,vendors and other water professionals, and school groups
and community leaders such as the Clay County Economic Development Corporation (EDC). The
collateral messaging is easily customized to the specific groups attending and has been received very
positively. Staff are working to significantly expand school visits in the following fiscal year.
NEXT STEPS:
The Project Quench demonstration project,and the completed Integrated Water Resource Planning evaluation
laid the long-term planning groundwork for future large production-scale infrastructure programs to meet the
demands of a growing Clay County population. Staff anticipate a finalized Project Quench Demonstration
report in the fall of 2025, approximately 2-3 months after receipt of final laboratory results. We expect the
report to document the ability of the facility,as designed,to produce water exceeding state and federal drinking
water standards. Staff budgeted appropriate funds and will continue to operate the facility next year in a
reduced sampling mode for the purpose of continuing public engagement.
In 2025/2026, Staff will begin focused feasibility studies of shallow groundwater augmentation of the
reclaimed system, and more detailed evaluation of large surface or stormwater storage. Both were identified
as leading alternatives in the Integrated Water Resource Plan.
Alternative Water Supply Expenditures and Revenues:
Expenditures(as of 4/30/2025)
Potable Reclaimed Water Pilot Project $329,332.08
Total $329,332.08
2023/2024 Revenue(as of 4/30/2025)
Surcharge Fund(Existing Customers) $463,942.92
Connection Charge Fund(New Customers) $248,532.91
Total $712,475.83
Total Annual Expenditures and Revenues(as of 4/30/2025)
Beginning AWS Cash Balance 10/01/2024 $1,238,871.35
Total Expenditures $329,332.08
Total Revenues $712,475.83
Ending AWS Cash Balance 4/30/2025 $1,622,015.10
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Changes In AWS Surcharge And Connection Charges:
In 2018, CCUA identified the need to systematically increase the AWS Surcharge and Connection Charge
over 25 years to generate sufficient revenue to fund the AWS Initiative as the program matures from feasibility
evaluations and pilot projects to full-scale capital project implementations in years to come. CCUA has no new
information available that would fundamentally or materially change the path set into motion. Staff
recommends following the AWS Initiative funding plan presented in 2018. The recommendation results in a
3%increase in, the AWS Surcharge increase from$1.18 to $1.22, and the AWS Connection Charge increase
from$388.01 to $399.65.
RECOMMENDATION:
Staff respectfully recommends a 3% increase to the AWS Surcharge and Connection Charge per the 2018
Analysis.
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